The Efficient Market Hypothesis Suggests That

question 70

Multiple Choice

The efficient market hypothesis suggests that:

• A)while individuals can be irrational, collectively they will not.
• B)because individuals are rational, collectively they are also rational.
• C)irrationality must a part of every economic model.
• D)asset price bubbles are efficient.

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Definitions:

Emergent

Something in the process of coming into being or becoming prominent, often used to describe trends or phenomena that are newly arising.

Affiliation

A connection or association with a group, organization, or field, often aiming for mutual benefits.

Image-Oriented Advertising

A form of advertising that focuses on creating a positive and appealing image of a product or brand, often through emotional appeal or association with certain lifestyles.

Mature Consumers

Individuals typically over the age of 50 who have distinct consumer behaviors and preferences influenced by their life stages and experiences.